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Using a credit card before chapter 7

StartingOver10
Moderator Emerita

Re: Using a credit card before chapter 7

Agree with the others - she needs to wait to file AND she needs to make payments on that $7k - at least. No one needs to charge up a synchrony card to the tune of $7k when financial trouble is looming.  To me it looks like she did it on purpose and I'm sure the trustee will have a similar reaction. The more time and payments she can put between that $7k run up of charges and the actual filing, she will be in much better shape. 

 

If her husband isn't working, then he should work for uber to get the funds to help make payments on that debt.  My son-in-law makes very good money working at night for Uber and he watches my grandson in the daytime while my daughter works.  This friend of yours will have to come up with something while the time is going by and having her husband working helps. 

 

I know others will say to stop making payments but to take out $7k and then stop paying is a huge red flag to the creditor and the trustee. 

https://www.nolo.com/legal-update/dollar-amounts-changed-presumption-of-fraud-65383.html

 

She needs to start to study Bk too so she doesn't inadvertantly do something that would dismiss her bk or trigger fraud. The nolo bk series is very helpful.  

 

This isn't a game. She needs to be prepared.  

Message 11 of 12
Kb109
Frequent Contributor

Re: Using a credit card before chapter 7

Agree 100% with StartingOver10!! I totally forgot to include making payments in my previous post. Making the minimums each month will at least demonstrate good faith and shows she had the intention to pay the debt but just couldn't in the end. I hope this is truly the case. I'm not saying making payments will get her out of the clear, but making on-time payments for 3-6 months before filing is going to look a lot better. I still question why she ran the cards up so recently before deciding BK is what she wants to do. But it's not my place to judge and it's none of my business. Best of luck to her. 

Filed Ch7: 6/21/17
Discharged: 10/03/17
Current FICO8 Scores as of 2/10/2019: EX 651, TU 678, EQ 679
My Cards: 1FBUSA $2,900 (survived BK7 and is my oldest account!), Fingerhut $1,100, CreditOne $900, Ollo Rewards $2,500, LendUp Arrow card $2,000, CapitalOne Platinum $3,000. GARDENING FOR THE NEXT TWO YEARS!
Message 12 of 12
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